A company plans to purchase equipment for $$500,000$ which will generate after$-$tax cash

flows of $$210,000$ in year $1$ and $$200,000$ per year in years $2$ & $3.$ This equipment is

estimated to have a positive terminal value of $$25,000.$ The company interest rate is

$12\%.$ Calculate:

$$ Net present value $($round to the nearest $$)$

$$ Present value index $[$aka $$profitability index$]($round to $3$ decimal places$)$

$$ Payback period $($in years$)$

In addition, calculate the internal rate of return.

Put your answers here:

Net present value: $\_\_\_\_\_\_\_\_\_\_$

Present value index: $\_\_\_\_\_\_\_\_\_\_$

Payback period: $\_\_\_\_\_\_\_\_\_\_$